"When it becomes serious, you have to lie." - Jean - Claude
Juncker, the Europe Group President, April 2011

"The worst is now over... the situation is stabilizing." - ECB
President Mario Draghi, March, 2012

"Uganda does not want to be Spain" - Asuman Kiyingi, Uganda's
foreign minister, June 13th 2012

"For a small, open economy like Cyprus, Euro adoption provides protection
from international financial turmoil." - Jean Claude Trichet,
President of the European Central Bank, January 2008

"Luxembourg is different from Cyprus" - Business Insider,
March 22, 2013

"Latvia is not Cyprus." (Actual quote: "[T]here is no truth
in statements that Latvia could become Cyprus." - Kristaps Zakulis, head of
the FKTK financial sector regulator, March 21, 2013)

"Slovenia is not Cyprus." - FXStreet.com (Actual quote: "I am very
sure that we (Slovenia) will not get into such a situation (as Cyprus)," Marko
Kranjec, Bank of Slovenia governor.)

"Malta is not Cyprus." - Tony Zahra, Times of Malta,
March 23, 2013

"Hungary is not Cyprus." - Financial Times, March 21,
2013, See below

"The Czech Republic is not Cyprus." - Financial Times,
March 21, 2013, See below

"Poland is not Cyprus." - Financial Times, March 21,
2013, See below

"Countries like Poland and the Czech Republic have very solid banking systems,
completely unlike the situation in Cyprus - and there is no sign of a banking
run. The most exposed are Hungary and Slovenia, but even they are a world
away from Cyprus's situation." - Jan Cienski, "CEE: Contagion Risk from Cyprus?" - Financial
Times, March 21, 2013

"Credit is not money. Credit is trust. Trust can vanish in an instant." -
Frederick J. Sheehan, March 25, 2013

TESTIMONY OF J.P. MORGAN - THE MAN - IN 1912 BEFORE THE "PUJO COMMITTEE," a
subcommittee of the House Committee on Banking and Currency. Morgan
was questioned by Samuel Untermyer. The source is Jeanne Strouse's biography
of Morgan:

"Untermyer: "The basis of banking is credit, is it not?"

Morgan: "Not always. That is evidence of banking, but it is not the money
itself. Money is gold, and nothing else."

Untermyer asked Morgan whether credit was not based on money - that is, did
not the big New York banks issue loans to certain men and institutions "because
it is believed that they have the money back of them."

Morgan: "No sir. It is because people believe in the man."

Untermyer: "And he might not be worth anything?"

Morgan, with less than perfect regard for grammar: "He might not have anything.
I have known a man to come into my office, and I have given him a check for
a million dollars when I knew they had not a cent in the world."

Untermyer: "There are not many of them?"

Morgan: "Yes, a good many."

Untermyer: "That is not business?"

Morgan: "Yes, unfortunately it is. I do not think it is good business, though."

Untermyer did not, apparently, think much of this answer, for he repeated
his proposition. "Is not commercial credit based primarily on money or property?"

Morgan: "No sir; the first thing is character."

Untermyer: "Before money or property?"

Morgan: "Before money or property or anything else. Money cannot buy it" -
and he elaborated after a few questions - "because a man I do not trust could
not get money from me for all the money in Christendom."

FEDERAL RESERVE CHAIRMAN BEN S. BERNANKE, 2011:

"The reason people hold gold is protection against tail risk, really, really,
bad outcomes. To the extent that the last few years have made people more
worried about the potential of a major crisis, then they hold gold as a
protection." - Federal Reserve Chairman Ben S. Bernanke, the greatest
tail risk in the West since Genghis Khan, July 13, 2011.

"With the current policy, [European leaders] will need force to keep it
going against the interests of the people. You do not need to be a eurosceptic
to conclude that such a monetary union is also deeply immoral." - Wolfgang
Manchau, Eurozone Break - Up Edges Even Closer, Financial Times,
March 25, 2013

The People are growing angry. The People will become very, very angry.

Sheehan serves as an advisor to investment firms and endowments. He is the
former Director of Asset Allocation Services at John Hancock Financial Services
where he set investment policy and asset allocation for institutional pension
plans. For more than a decade, Sheehan wrote the monthly "Market Outlook" and
quarterly "Market Review" for John Hancock clients.

Sheehan earned an MBA from Columbia Business School and a BS from the U.S.
Naval Academy. He is a Chartered Financial Analyst.